News & Analyses

Dow Holds Steady and Hang Seng Drops, but Nikkei 225 Rally Continues

DAX 40 makes yet another record high, FTSE 100 nears 8,000 mark while S&P 500 slips​​​

Dow Jones, Hang Seng, Nikkei 225​​​Dow steady in early trading​The index held trendline support on Monday, though it finished off the highs.​Nonetheless, the price has yet to break lower in a meaningful way. Investors are likely waiting to see what the Fed rate decision brings in terms of any changes to the rate forecasts for the year.​A close below trendline support opens the way to the 50-day simple moving average (SMA), and then down to the previous high at 37,816.Dow Jones Daily Price Chart

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​​Hang Seng heads towards support​After rebounding in the early part of last week some bullish momentum has faded, but the price remains above trendline support from the January low.​This would need to be broken to provide a more solid foundation for a bearish view, as would a move below the early March low of around 16,100.Hang Seng Daily Price Chart

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​​Nikkei 225 rallies after Bank of Japan decision​It would have required a much more hawkish Bank of Japan (BoJ) decision to unsettle the Nikkei 225.​As it was, the move out of negative interest rates had been well-telegraphed. The index continued to rally, maintaining the bounce-off trendline support from January, and heading back towards 40,000.​Further gains target the 6 March high at 40,574, and beyond this, the index will sit at a new record high. It would require a reversal and closeback below trendline support to negate this view.Nikkei 225 Daily Price Chart
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